March 22, 2018 / 10:39 AM / a year ago

Zhongyu Gas 2017 profit soars on China clean fuel drive

BEIJING, March 22 (Reuters) - Zhongyu Gas Holding said on Thursday its 2017 profit soared 170 percent due to a huge boost from the rapid pace of China’s campaign to switch millions of households to clean fuel.

The maker of gas stoves, boilers and pipelines said it expects to double the number of households it converts to run on gas this year, as Beijing ramps up its campaign to wean the nation off its favourite fuel, coal.

Shares in the company rose to HK$8.4 per share on Thursday, up from HK$2.09 a year ago.

Earnings per share rose to HK$22,100, up from HK$8,160 a year ago, the company said in a statement to the Hong Kong Stock Exchange.

Zhongyu Gas said it aims to convert 800,000 households to gas this year from coal. New customers connected with its pipelines grew 40 percent from 2016 to 365,178 families in 2017.

Gas sales rose 35 percent to 1.3 billion cubic meters, the company said.

Major cities across China were forced to divert gas supplies from industrial users for months this winter to residential sectors to ensure homes were heated during the cold winter months.

Both Beijing Gas Blue Skies and China LNG Group issued profit warnings on the high cost of gas this week.

ENN Energy Holdings, a major gas utility and LNG operator is due to release full-year results later on Thursday. Its shares have climbed almost 50 percent in the past 12 months.

Reporting by Meng Meng and Josephine Mason; Editing by Sunil Nair

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